Rogue Toyota Dealers Price Gouging on 2010 Prius

I too looked at Oak Brook Toyota, as they are one of the closest ones to my house (only Lombard and Elmhurst are closer, and just barely), and found them to be 'scammers'.

When I looked at their inventory, they are consistently one of the few Toyota dealers to have any Prius in stock because of the crap that they pull. I remember them telling me, when my car was on order, that they could get me a IV, with sunroof, and have the AT package installed in their service area, and it would just barely cost me more than the V alone. Of course, they are full of [[insert favorite noun here]].

They were forcing you to buy any car they had with the rustproofing, lo-jack, and several other crap profit centers for them. Every time I see a car with their license plate frame on it, I feel bad for the driver.

Where did you end up buying your Prius, A Prius??

 

As soon as those private businesses give back government (taxpayer) subsidy and pay cost externalities, they are welcome to do whatever the f*ck they want.

 

I finally found a car that meet my needs at Continental Toyota in LaGrange. It's 35 minutes from my house in Naperville but close to my business in LaGrange. I'm in that area all the time, but don't know if it is close enough to go there for service.

I went to Naperville Toyota first, and of all the dealers I visited, I liked them the best. It was closest to my house, and had the best service I found, but they did not have the cars. During a "normal" buying time (not like the C4C time), this will be the place I return to.

 

Exactly!!

Ever been to a flower shop that raises prices of roses on Valentines day, and they drop the week after? Many shops do that, but some do not. One may make more money at this time of year, but the other may build a bigger, happier, customer base, and make more money in the long run.

I own two chocolate stores. Valentine's Day is my busiest day of the year for selling Chocolate Strawberries. I don't raise prices for that day, but I know many stores that do. During these hard economic times, when sales are down in retail across the country, my sales are up, and the highest they have ever been. Not because I raised my prices, but because people will eventually go to the place that treats them nice, is fair, provides good service, etc. I am one of those places, and my sales show it.

These dealers are charging more money now because they can. Some will pay it, some will not. In the short term, they will sell all their cars, and make decent money now. But, customers will remember their tactics, and may not return in the future. It's all about the way you run your business. In these times, some will shine, and some will not.

 

I contacted Toyota of Naperville first, too. They were willing to sell us one arriving in a week or two for MSRP if we put down a deposit. No issues with them at all, except they had none to test drive. Called around to Westmont, Lombard, St Charles and Elmhurst. Similar stories all around, though some put the hard sell on extras right away. On a whim I checked Carmax in Kenosha, where my wife bought her last car, too. They had a II and a IV on the lot at $500 under and the sales person managed to hold it from my call at open Monday morning 'till we got there around 7pm.

Never did try Continental. Hopefully the service department at Naperville is as good as my Honda dealer.

Yes, capitalism is great. It's nice to be able to shop around and find the best deal. Freedom of speech and thought is also a nice side benefit in the good 'ole USA. We can also point out that some dealers and sales people are unethical and hope our stories help other buyers from paying too much. I believe it was Adam Smith who touted that perfect information is needed for perfect markets. Sharing of information on pricing (including complaints about price gouging) is essential to making markets more efficient.

 

Exactly. Plus, when stories about your competitors and their price gouging get around, it should have the effect of sending you more customers. When one of their customers or potential customers complains about their business practices to a friend or neighbor, that's also capitalism at its best, sending you more business because your pricing and service are better.

 

Carmax sells new cars too? I never would have thought that? I thought they were all used there.

 

Only a few of them. Kenosha is the only one I know in the Chicago area. They have Toyota and Chevrolet for new cars. I wouldn't have known either, except the sales person at the Naperville one told us about it when I went in for a guaranteed trade-in quote back in 1999 when my wife bought her Subaru. They no longer have a new Subaru dealership there, though.

The drive up is awful at rush hour with all the construction at the border, but the drive back was nice...

 

Bought my II in Bristol Ct. via internet sales. Had a nice deal in Wappingers NY but could not live with the color choices. Buying my red prius in Ct cost me 400 in "dealer fees" but I did get it for MSRP plus added car mats ($200) feel like I got ripped off on dealer fee as NY only charged $45 and they registered & inspected the car! I had to deal with DMV myself (who over charged me $350 in tax) (yet to be refunded) and NYS inspection fee. For my $400 in dealer fee, I did not get so much as a thank for purchasing from us. Handed keys, manuals, slaped on dealer plates and drove my cluncker away. What a great buying experience!! They won't see me again!

 

Well that sucks. They sure should have thanked you. And, as you may already know, buying out of state in most states, including my own, means you have to go pay sales tax and title fees yourself. My out of state buyers have to go register their own cars because I can't do it for them ... not out of state.

Look at it this way: you got what you paid for. You were able to get the right color combination and unload a clunker for $4500 bucks.. and go get the car yourself. It may have been a fast transaction, but truthfully, once the C4C was announced to have re-started after that first week, it's a blur! I know I met some dandy folks and some very neat clients for life... but faces are a total blur. You bought during a crazy time and perhaps a reminder to the man or woman who did your delivery that you felt less than appreciated would help you both.

 

I actually find internet purchasing quite convenient:

• No salesmen to deal with, just internet sales mangers who are typically more straight forward with you.
• Fast service.
• If out of state, you can wait 2 months before getting the license plate.
• Cheaper prices & better selection.

 

internet experience

I'm the Director of that here -- and I am 99% Internet sales. I seldom do any walk-in fleet business unless they already know to come see me. My clients come to me from many places on the internet, via email and plenty of prior clients buying another car or referred BY a previous buyer.

It is easier, faster and more efficient. Sometimes, I am surprised buyers still walk into a showroom and start talking to a salesman. But truthfully... I have to add here, it's because of their existence - the retail guys -- that I can do what I do - sell for less consistently.

 

Lets try this,
You just bought a new dining suite so you decide to advertise the old one in the local paper for $250. You get a couple of calls the first one says he will paypal a $20 refundable deposit which, if he chooses not to buy you must refund. Or in other words he has nothing to lose. The next caller says she is coming over, arrives, looks at the suite and offers you $270 cash for the suite and she is willing to take it now.
Would you sell to the first caller who may want their money back if the suite isn't what they want or take the $20 over advertised and get the deal done now?

If the deposit was non-refundable I'd agree with you, but the way I see it this is market forces at work.

 

I am a US military officer (retired) and my new vehicle transactions have gone very smoothy at Walser Toyota in Bloomington, Minnesota. I purchased a 2009 Toyota Corolla for my daughter here. And, I recently traded in my 2006 GII Toyota Prius for the 2010 GIII Toyota Prius at the same dealership. These transactions were completed in person. And, my experience was very very good. They will continue to receive my business on a long term basis. And, I will also refer any friend that needs a car to visit this dealership. No, I didn't get $4,000 dollars off the MSRP. And, no, I didn't even get free car mats? What some people fail to realize is that the Toyota company, dealerships, sales, and associated staff still have to make a living also. I don't forget it. Yes, I've had impersonal transactions on Ebay. Many of them have been good. But, when I'm making a larger monetary purchase, I like the personal contact. Walser Toyota in Bloomington Minnesota is an outstanding dealership. When I'm treated with respect and kindness, I don't forget it.

 

Good example or market forces. To add to the example, slimy/unethical depends if you made an agreement to take the $20 deposit first or not and if so, whether or not you honor your agreement.

 

observations

OK -- I have two cents worth here.

If there is someone with a deposit on a car here, they have the first crack at the car BUT I cannot hold cars indefinitely. There are circumstances under which cars are held for folks, but seldom longer than 24 hours if they are locals. When you have a deposit preparing to be taken, you have to relay the facts to the person entrusting you with the task of getting their car. Meaning, for me, the car is held for 24 hours unless there are circumstances preventing them from coming immediately... in my case, folks out of state can't always hop a plane and get here same-day. Or, sometimes, even next-day. Even IN my state, folks can't hurry right in. There are ways to do paperwork via fedex and also ways to prepare management to "relax" and not worry that a car's being held that could be sold to someone local. If I have a sizzlin' hot Prius, which right now would be ANY Prius I could get my hands on, I wouldn't be too keen on taking an out of state deposit. I have enough buyers IN my state to help and frankly, folks local to me are more loyal. If you are 500-1000 or more miles away, there are at least 200 dealerships who are just as close who might have a car. Once I secure a car with deposit, that keeps ANYONE else from selling it.
For me, that comes with a responsibility to make sure the car goes for several reasons. One: if every time I take a deposit from afar and the deposit is refunded and ends up being sold to someone else, how long till they don't trust my deposits list during a crunch for cars? Like the little guy who cried wolf, I guess. Two: If someone else wants the car and is told it's sold, then settles for a different car or different color or package, and then their perfect car shows up available again, that sucks for them... and often dissolves trust between us... because most often folks will think you sold them a car sooner to get their $ sooner, and not attribute the circumstances to a flaky buyer who cancelled.

I am very cautious when I accept deposits for incoming cars. I also VERY seldom accept deposits on cars we do not have coming already ... meaning future draft picks. If I don't have a set car to follow, it's a pain in the nice person to deal with someone wondering where their car is. In reality, WHAT car? It's a placeholder for when I am able to get one. If I am out of cars and want a deposit, I have a really good reason for it, trust me -- I do. Because it's not productive to take a deposit and refund incessantly.

Do I prefer to sell locally? Yes. I get way more referrals that way... and the store gets service biz down the line, and if everyone pays the same for the cars for the most part, it's more financially savvy to sell locally. Long term, you do earn more cars but there is also a system with Toyota that determines zip code and registration for their cars. I might sell 10 cars to SF in 1 month. Once Toyota sees that, they will geographically adjust allocations to send more cars into SF to their local dealers so buyers don't have to travel. That costs me eventually, selling out of my market area and region. It's a trickle at first but it affects the dealership in a PMA way (Primary Market Area) long term... so there are a ton of facets to this folks never realize... and I am, after all, a long term Toyota kinda gal so I can't just be "in the moment" all the time. It affects way more folks than just me, and any commissions I might get.

 

I'd take the $270 and hand the first caller their $20 deposit plus $10 for their trouble but that is just me. We would both be $10 up.

 

Bingo. I used to think very much like Matt - free, unhindered market all the way.....

that ideology is bankrupt and HAS PROVEN ITSELF FAILED. It leads to a king / serf or pharoh / slave condition.... those with the money and power (banks, corps.) can easily enslave consumers at will and have done so. Regulated capitalism is better - gouging is real and not a productive or positive element of a free market.

 

thanks